In 2006, the Governor of California negotiated amended gaming compacts with four tribes in Riverside and San Diego Counties: the Agua Caliente Band of Cahuilla Indians, Morongo Band of Mission Indians, Pechanga Band of Luiseño Mission Indians, and Sycuan Band of the Kumeyaay Nation.
These agreements allowed the tribes to operate a significant number of additional gaming machines and extend the term of their compacts in exchange for increased revenue-sharing payments to the State, local governments, and nongaming tribes.
In addition, the amended compacts were to increase protections and benefits for local communities, the environment, patrons, and employees. The amended compacts, which were ratified by the State Legislature in June 2007, were challenged in the February 2008 statewide ballot as Propositions 94, 95, 96, and 97.
The Coalition to Protect California’s Budget & Economy commissioned Alan Meister to analyze the potential economic and fiscal impacts of the amended compacts on California’s economy. In his report, which was released in 2008 prior to the February election, Dr. Meister concluded that the amended compacts would generate significant, positive, long-term economic and fiscal impacts.
In addition to increased output, jobs, and wages, the amended compacts were projected to generate significant fiscal benefits to state and local governments, including increased tax revenue, as well as increased direct revenue-sharing payments by the tribes.